return icon

Low-income households benefit enormously from remittances: study

The monthly inward remittances by low-income earners average 10 times their recipients’ incomes, according to a new report by US payments company UniTeller.





“Both Sides of the Coin: The Receiver’s Story” said the average remittance is US$735 while those who receive it have an average monthly household income of $73.

More than a fifth of the latter regularly ran out of money before they got their next monthly remittance because of poor financial planning and spending on non-essential luxury items.

Almost half of all remittances were used for day-to-day family needs (24 per cent) and bill and loan repayments (25 per cent).

Much smaller sums were apportioned to areas that could further economic progress, like education (11 per cent) and savings (14 per cent).

Relatively high amounts were spent on non-essential luxury items (9 per cent).

Alberto Guerra, CEO of UniTeller, said: “With global mobility increasing, remittances are playing a more important role in the livelihoods of low-income families and communities.

“As the reliance on remittances grows, a key challenge is ensuring this income translates to building sustainable wealth.”

Thirty five per cent of recipients said they would reach out to their main sender when they run out of the money they receive while the rest ask family and friends.

But 37 per cent said they would ultimately have to forgo day-to-day needs if this happens.

The survey found that a reliance on remittances also placed increasing stress on the relationship between senders and receivers.

Two in five (43 per cent) reported that the expectation of receiving remittances placed emotional stress on their family and 31 per cent said it impacted their relationship with the sender.

Though the report highlighted that receivers did not allocate enough of the remittances to savings, it said there were untapped opportunities to increase the capacity to build sustainable wealth, with 59 per cent of regular recipients saying they were extremely eager to learn and cultivate good financial habits.

The report was the first instalment of UniTeller’s research into the behaviours and attitudes of low-income remittance recipients in the Philippines, India, Indonesia, and Viet Nam regularly receiving money from senders in Hong Kong, Singapore and the US.

It was based on a survey of 1,911 adults from low-income households, 301 in Viet Nam.

Viet Nam is expected to remain the ninth largest remittance receiver in the world with an estimated inflow of $16.7 billion in 2019, according to the World Bank. — VNS


Achilles heel in tourism

Vietnam’s tourism industry has made only meager strides in diversifying its products despite years of growth.

The most addictive dish on Ha Giang plateau

Ha Giang attracts tourists not only for its majestic natural landscape and honest ethnic people but also for its bold, regional specialties that cannot be found anywhere else.

Liquidity needs to be ensured: Central bank

The Governor of the State Bank of Vietnam (SBV) sent important messages about monetary policies at a meeting with businesses held by SBV and HCM City People’s Committee late last week.

Firms hesitate to access loans due to weak consumption demand

The State Bank of Vietnam last week cut its policy rates for the third time this year to prop up economic growth.

Banks experience significant increases in non-performing loans

Given the challenging economic environment, the performance of numerous banks is rather bleak, particularly due to the mounting bad debt levels.


Work on Cat Bi Airport’s Terminal T2 to start in Q4

Vietnam should consider announcing the end of COVID-19: NA deputy

At the ongoing fifth session of the 15th National Assembly (NA) held on May 29, Nguyen Lan Hieu of the NA Delegation of Binh Dinh province suggested that the end of COVID-19 should be announced.

Cut on automobile registration fees to facilitate auto industry

The Ministry of Industry and Trade supporting the reduction of automobile registration fees is considered a positive effect to the auto industry in the context of the automobile market facing many difficulties.


Vietnam leaves good impressions at multi-ethnic festival in Czech Republic

Vietnam to build center for search and rescue in Spratly Islands

Deputy Prime Minister Tran Luu Quang has approved a project to improve the capacity of incident and natural disaster response and search and rescue to 2030, with a vision to 2045.

Male model finishes as third runner-up at World Fitness Supermodel

Ngo Hoang Linh, the Vietnamese representative at World Fitness Supermodel 2023, was awarded the third runner-up title during the male pageant’s grand final held on May 27 in Thailand.

Old Vietnamese publications in romanised script on display in Paris

An exhibition showcasing old Vietnamese publications in Chu Quoc ngu (romanised Vietnamese script) is underway in Paris, France.

HCMC police raze black-credit companies with illicit profits of over US$176mln

The Ho Chi Minh City Department of Public Security yesterday prosecuted nine people for usury in civil transactions.

Entertainment and cultural events of the week (May 29-June 4/2023)

Upcoming entertainment and cultural events in Vietnam's major cities on May 29-June 4.

More cooperation needed to develop rare earth industry in Vietnam

The applications for rare-earth element products have developed strongly in recent decades, especially in the field of agriculture in which they are used to create clean, safe, and effective agricultural products.